On Friday, October 27th, the front page story in the K.C. Star was on the Wal-Mart Generics Plan entitled the $4 Drug Gambit. It suggested a Drug War between the big pharmacies. Wal-Mart is offering 314 generic prescriptions, approximately 25% of their line, for $4.00 for a one month supply. The program is now available in MO and KS, and is being offered in over 1000 of their stores. So the question arises, HOW CAN THEY DO THAT AND MAKE ANY MONEY?
Apparently it’s easy. They’ll still make a fortune, more than enough to compensate, from their remaining drug sales. I got the following information from the Life Extension Foundation who got costs from the suppliers of the active ingredients. Big Pharma has been price fixing for decades, has virtually bought, paid for and staffs the US FDA, and as a result gets away with outrageous profits.
| Drug | Retail/100 Tabs | Cost | Mark UP % |
|---|---|---|---|
| Celebrex 100mg | $130.27 | $0.60 | 21,712% |
| Claritin 10 mg | $215.17 | $0.71 | 3,306% |
| Keflex 250 mg | $157.39 | $1.88 | 8,372% |
| Lipitor 20 mg | $272.37 | $5.80 | 4,696% |
| Norvasc 10 mg | $188.29 | $0.14 | 134,493% |
| Paxil 20 mg | $220.27 | $7.60 | 2,898% |
| Prevacid 30 mg | $44.77 | $1.01 | 34,136% |
| Prilosec 20 mg | $360.97 | $0.52 | 69,417% |
| Prozac 20 mg | $247.47 | $0.11 | 224,973% |
| Tenormin 50 mg | $104.47 | $0.13 | 80,362% |
| Vasotec 10 mg | $102.37 | $0.20 | 51,185% |
| Xanax 1 mg | $136.79 | $0.024 | 569,958% |
| Zocor 40 mg | $350.27 | $8.63 | 4,059% |
| Zoloft 50 mg | $206.87 | $1.75 | 11,821% |
Obviously, there’s still some profit for generic drugs even at the rate of $4.00 for a prescription for a months worth of drugs. In fact, at the $4.00 price, the pharmacy is making more profit than Preventics does on its products. Let’s not think that Wal-Mart is looking out for the little guy. First and foremost they’re looking out for Wal-Mart.